Home Inspection Report Why You Should Obtain One: Fill & Download for Free

The inspection is known as a 4-Point Inspection’s many times required for a homeowner to maintain or get insurance coverage. Requirements of the inspection were designed by the insurance company so that they’re able to get a much better understanding of a structure for which they are providing insurance.This especially is pertinent when an older house is being insured. The older homes have had a lot more time to have their systems replaced or repaired or for their structure to possibly fall into disrepair. Homes that are older also might have been using construction materials or techniques that, although they were normal when they were being used, may have been phased out because there are more modern practices. These kinds of things are all critical and essential for insurance companies to know about since it will help them to determine whether or not a house can be insured with their insurance company.An example would be a house that was built in 1958. This kind of house would have a fuse box as well as fuses that screw in since this was a standard practice back then. These types of fuse boxes still exist, and homeowners can buy replacement fuses as they need to. However, a lot of insurance carriers have rules when it comes to underwriting that will prohibit them from providing insurance for this type of house knowingly with these old fuse boxes. The inspection is what’s going to let the carrier know what the house has. Since they are not going to know until they receive the inspection, this inspection often is required when a home is being purchased that is a lot older. This means that the carrier is going to be sure about the home’s essential features before they insure it.These types of inspections also can be requested when there’s a lot of other types of situations that aren’t directly related to the home’s age. Some of the companies do one on practically all of their policies.What are those four points?The name of the inspection comes from the four important systems in a home that usually will cause someone to claim on their insurance. For each one of these four items, the inspection’s limited to each system’s visible parts.These systems are:HVAC system (Heating, Air-conditioning, and Ventilation system)Roof systemPlumbing systemElectrical systemThere are two things that an insurance company will be looking for when it comes to the systems.The first thing they‘ll be Interested in is the condition of each of the systems. They want to know whether they’re a new system, a used system, and what kind of shape they are in. Is there evidence of any repairs that were made? If there have been repairs, do those repairs look as though they were done professionally? If there is any deficiencies or damage that can be noted, there’s a good chance that they’ll have to be corrected to maintain or get an insurance policy.Another thing that they will be looking at is how old the components are. If you’re purchasing a home that is older, there’s a good chance that the age of the features is going to be far beyond the carrier’s maximum age for underwriting. This is even true if the component’s condition looks to be in good shape. If the inspection says that there may he deficiency, you shouldn’t panic.When the four-point inspection is appropriately completed, it should capture all of the possible items which might be a problem for the underwriting guidelines of a company. For a four-point inspection to prove it to usefulness and for it to be accepted by the insurance companies, insurance companies must be confident, Inspections going to give them the necessary information for making their decision.A lot of conditions that have been reported on the four-point inspection might be an issue for some of the insurance companies. However, your chosen insurance carrier might not see it as a problem. That’s why you want to have an insurance agent that knows what they’re doing and can work with things. It’s a trusted insurance agent who will be able to clarify and confirm if systems need repairing, updating, or replacement. They’ll also be able to tell after they’ve reviewed reputable four-point inspection whether it’s better to choose a different company for your insurance with guidelines for underwriting that will fit your circumstances better.An insurance company always should be willing to tell you about the findings. However, it’s going to be the agent who is going to take the results and ensure that you have the best policy with the best coverage, insured with the best possible carrier.Keep in mind everything about a four-point inspection is related to retaining or obtaining homeowners insurance. This inspection is a limited scope, and it only takes around 20 to 30 minutes for the most part. It is focused on coverage, having nothing at all to do with the kind of inspection you should get if you were trying to decide whether you should buy a home or not. That kind of inspection is a comprehensive home inspection, and it often takes anywhere from 3 to 4 hours. This type of inspection will take a look at, and document lots of features are throughout the home. Primarily or exclusively using this type of inspection to decide whether or not you should buy your home isn’t a good idea.For more information about home inspections visit: A Guide to the 4-Point Inspection • Professional Home Inspections

Knowing as much as you can about the condition of the property before you buy will help you avoid problems and extra costs down the track. The best way of doing this is to get a pre-purchase property inspection report - commonly known as a building inspection. The following information explains what you need to know about building inspections.What is a pre-purchase property inspection report?It's one of the different types of building inspection reports you can get done. As the name says, this building inspection report is the one you get before you buy a property. Sometimes referred to as a 'standard property report', a pre-purchase property inspection report is a written account of the condition of a property. It will tell you about any significant building defects or problems such as rising damp, movement in the walls (cracking), safety hazards or a faulty roof to name a few. It is usually carried out before you exchange sale contracts so you can identify any problems with the property which, if left unchecked, could prove costly to repair. Throughout this web page we will refer to the report as a 'building inspection report'.Note: A building inspection report is different to a 'pest inspection report'. While a building inspection report should identify any visual damage that may have been caused by termites, it usually won't include the existence of termites or other timber destroying pests. It can be advisable to get a separate pest inspection report done before you buy a property.Why do I need one?There are three good reasons why you should get a building inspection report done before you buy a property:so you will know in advance what the problems areso you can use the information to try and negotiate a lower price for the property i.e. you may have to pay to repair some of the problemsso you can get specialist advice about any major problems and how they will affect the property over time.Of course, the building inspection report will be one of many things you will need to consider before buying a property.Choosing the right person to inspect the propertyYou should always use a suitably qualified person, such as a licensed builder, a surveyor or an architect to provide a professional building inspection report of the property you are thinking of buying. These professionals will know what to look for, and will see through any cosmetic improvements covering up faults that might otherwise be missed by an untrained eye.A professional person will ensure that the format and content of the report complies with the Australian Standard (AS 4349.1).Make sure that the person you choose has adequate insurance cover, particularly for professional indemnity.ContentsThe format and amount of detail in the report will depend on the type of property, its size and age, its condition and the reporting process used by the consultant or organisation preparing the report. These factors will also influence the cost of the report.Some building inspection reports will adopt a standard format or use a comprehensive checklist while others will be individually tailored for each property. Photographs may or may not be included. The important thing is that the report complies with the Australian Standard (AS 4349.1).A building inspection report should include enough information for you to be aware of the property's condition and identify any significant problems.However, a standard building inspection report is generally a visual inspection only and may not identify major structural defects or other hidden problems. If you have concerns about such problems, you might consider obtaining an additional assessment of the property from a suitably accredited specialist, eg. pest inspector, structural engineer, geotechnical engineer, surveyor, solicitor, electricity supply authority or water supply authority.General informationThe consultant should inspect all accessible parts of the property. These include the following areas:interior of the buildingexterior of the buildingroof spaceunder-floor spaceroof exteriorsite.You may also like to ask that a particular part of the property, or certain items, also be inspected, such as:visible signs of asbestos problemsexistence of an operable electrical safety switchoperable smoke alarms.The siteThe following would normally be included in a building inspection report:garage, carport and garden shedseparate laundry or toiletsmall retaining walls (ie. non-structural)stepsfencingsurface water drainagestormwater run-offpaths and driveways.Make sure you specify any particular items or areas on the site that you want inspected.Other detailsThe report should also include the following information:your namethe address of the property to be inspectedreason for the inspectionthe date of inspectionthe scope of the inspectiona list of any area or item that wasn't inspected, the reasons why it wasn't inspected and if necessary, a recommendation for further investigationa summary of the overall condition of the propertya list of any significant problems that need fixingif necessary, a recommendation that a further inspection or assessment be carried out by a suitably accredited specialist, e.g. pest inspector, electricity supply authority, water supply authority, structural engineer, geotechnical engineer, surveyor or solicitor.The summaryThe summary is possibly the most important part of the report. It should give you a brief summary of the major faults found in the property and its overall condition considering its age and type.Things not includedA building inspection report usually will not include:parts of the property that were not or could not be inspectedmatters outside the consultant's expertisean estimate of repair costsminor defectstermite detection.A building inspection report should not be seen as an all-encompassing report dealing with every aspect of the property. Rather it should be seen as a reasonable attempt to identify any major problems that are visible at the time of the inspection. The extent of any problem will depend to a large extent upon the age and type of property.While the report will give you valuable expert advice, it will not cover everything.The consultant normally would not check things such as:footingsconcealed damp-proofingelectrical wiring and smoke detectorsplumbing, drainage and gasfittingair conditioningswimming pools and pool equipmentwatering systemsfireplaces and chimneysalarm and intercom systemscarpet and linoappliances such as dishwashers, insinkerators, ovens, ducted vacuum systems, hot plates and range hoodspaint coatingshazardsevery opening windowtelevision reception.Strata schemes and company title propertiesWith strata scheme and company title properties, the consultant will normally only inspect and assess the condition of the interior and immediate exterior of the unit you are thinking of buying. If you want the consultant to inspect other common property areas you will need to request a 'special-purpose' property report.Minor defectsMost properties will have minor defects such as blemishes, corrosion, cracking, weathering, general deterioration, and unevenness and physical damage to materials and finishes. If you want the consultant to report on minor defects and imperfections you will need to ask for a 'special-purpose' property report.Factors affecting the reportThere are certain conditions you should be aware of that will affect the final report. These include:problems that are difficult to detect due to weather or other conditions such as rising damp and leaksthe information you provide to the consultantthe specific areas of the consultant's 'expertise' as specified in the reportproblems that may have been deliberately covered up to make an area appear problem free.It may be difficult to detect leaks and other problems if services, such as water, have not been used for some time. For example, if the shower has not been used recently, leaks or dampness may not be obvious.Using the report for other purposesThis type of building inspection is carried out specifically for the information of home buyers. Its main purpose is to give you an expert's view of the condition of the property you are interested in buying.It is not intended to be used as a certificate of compliance for any law, warranty or insurance policy against future problems. Nor is it intended to estimate the cost of fixing problems. If you want the consultant to estimate the costs of necessary work you will need a 'special-purpose' property report.It is normally the role of your conveyancer or solicitor to deal with all law-related matters. The building inspection report cannot comment on things like the location of fencing in relation to boundaries, as this needs to be done by a registered surveyor.Ordering a reportMost consultants will need a minimum of 2-3 days notice to do a building inspection.When ordering your building inspection report, make sure you give yourself enough time to make a decision. You should get the vendor's permission to have the property inspected as early in the sale negotiations as possible. This will help you decide if the property is worth buying. There may be little point in spending money on conveyancing until you know the condition of the property.Inspections done during the cooling-off periodWhen you buy a property in NSW there is a 5 business day cooling-off period after you exchange contracts. During this period, you have the option to get out of the contract as long as you give written notice. The cooling-off period starts as soon as you exchange and ends at 5 pm on the fifth business day.A cooling-off period does not apply if you buy a property at auction or exchange contracts on the same day as the auction after it is passed in.If you want to get a building inspection done during the cooling-off period, make sure you give the consultant as much notice as possible. They will have to do the inspection, prepare the report and still give you time to make a decision. If you decide not to buy the property you will also need time to get a letter to the vendor or their agent, saying that you are withdrawing from the contract.Other types of reportsSpecial-purpose property reportsA special-purpose property report would normally cover the same items as a building inspection (pre-purchase property inspection) report but it may also include:an estimate of the cost of fixing major problemsa list of minor problemsa recommendation of the repairs and maintenance work needed.Check with the building consultant on what information they normally include in their pre-purchase property inspection reports and inform the consultant if you require additional information.Pest inspection reportsWhile the building inspection report should identify any visual damage caused by termite activity, it won't include the detection of whether termites and other timber destroying pests still exist.You should consider getting a pest inspection done as well as the building inspection, especially if the property is located in an area where termites are known to be a problem.Pre-sale (vendor) building reportsVendors will sometimes get a building report on the property they are selling so they can give it to interested buyers. While this can be helpful, it is better from your point of view to get your own independent report.If you are not satisfiedIf you are dissatisfied with any aspect of the report or your dealings with a consultant, you should first try and resolve the problem with them or their company. If they are members of an industry association you may be able to get help from that association to resolve the dispute.If you buy the property and later find that there are problems that were not identified in the building inspection report, you may need to seek legal advice about your position, particularly if the consultant's negligence ends up costing you a lot of money.If you can show that the consultant was negligent in doing the inspection, you can take legal action against them.It is therefore strongly recommended that you only use consultants that have adequate insurance cover, particularly for professional indemnity.Fixing problemsIf you end up buying the property you may need to organise repairs or renovations before you move in. If this is the case, there are some important things you should know. When using a builder or tradesperson for work where the value is over $1,000 the builder or tradesperson must:be correctly licensed with NSW Fair Trading for the work they are doingprovide you with a written contract where the value of work (labour and materials) is over $1,000give you a certificate of home warranty insurance before taking any deposit and before starting the work if the job costs more than $12,000.

What state are you buying a house in? Yes, you need to be represented by an experienced Realtor and/or attorney. You also need to request inspections prior to making your offer. Here’s the list your Realtor will obtain for you: home (contractor’s) inspection, pest inspection, roof inspection, sewer lateral (fiber optic camera in the line) inspection and if you are in the country on “well water”, an inspection/test to see how many gallons per minute of water flows (comes from the well) as well as a water quality test (is it potable, or Is it contaminated by naturally occurring substances like selenium, boron or arsenic?). DO NOT AGREE TO BUY BEFORE SEEING THE INSPECTION REPORTS! A legitimate real estate listing agent will also have prepared a full Disclosure Package for the property prior to placing the listing on the MLS. Is there one? Including the inspections? If not, why not? Walk away! Buy another property. Yes, there are many reasons why you, a home buyer, need to have professional representation. Each state has legally required forms that must be included in the sale of property; do not get involved in purchasing a “For Sale By Owner” (FSBO) home as these types of home sellers are ignorant of state law (and do not have possession of the proper paperwork). Last, the listing agent and/or your Realtor will obtain a Prelim (preliminary title report) from an escrow/title company, for the property in question. Read it carefully. Why? For legal reasons (too many to go into here), so you can actually “close” on the purchase - with your local city or county. Also, a NHD (Natural Hazards Disclosure report) for the property, read it carefully. Listen to your Realtor and/or attorney - don’t get screwed! Too much $$$ is at stake in a home purchase. If you do not know which Realtor to choose as your Buyer Representative, ask the Principal Broker or Broker/Office Manager at the real estate brokerage who they would recommend. Call and request an appointment. If you are NOT an “all cash” buyer, you will need to get a Mortgage Loan Pre-approval as well first (not a piece of paper from your bank that says you are Pre-qualified, that’s worthless). In addition, if your mortgage loan consultant is experienced they will go further and get you “fully underwritten” so you can move immediately to make an offer should you locate your Dream Home today. Now, any questions?